3 stocks to buy for 12–16% upside in next 3-4 weeks

Axis Securities has come out with a list of three stocks that it believes can deliver 12-16 per cent returns in the next 3-4 weeks. The domestic brokerage said these three stocks namely NLC India Ltd, Hindustan Copper and Usha Martin Ltd have seen decisive breakouts on technical charts, along with other bullish signals, and could deliver strong short term returns ahead.

On NLC India, Axis Securities said the stock has registered a decisive breakout above the down-sloping trendline resistance at Rs 249 on the weekly chart, signalling the onset of a medium-term uptrend. A close above the weekly upper Bollinger Band has further generated a fresh buy signal, it said adding that the stock is holding firm above the 61.8 per cent Fibonacci retracement of the Rs 186-269 rally at Rs218, establishing a solid medium-term support base.

"Supporting the bullish setup, the weekly RSI is holding above its signal line and broken past the horizontal resistance at 56, confirming renewed momentum and reinforcing the positive bias," it said.

The brokerage sees the stock testing Rs 302-313 levels in the net three-four weeks. It suggested buy range at Rs 272-268 and a stop loss at Rs 254 for NLC India. Axis Securities said Usha Martin has registered a decisive breakout above the Rounded Bottom pattern at Rs s 434 on the weekly chart, confirmed by a strong bullish candle. Volume activity, it said, remained subdued during the pattern formation but spiked sharply at the breakout, underscoring strong market participation and validating the breakout move.

"The stock is trading well above its 20, 50, 100, and 200-day SMAs, reflecting robust underlying strength and a favourable trend structure. Momentum indicators further reinforce the bullish setup, with the weekly RSI crossing above its horizontal resistance at 65 and staying firmly above its reference line, adding conviction to the positive outlook," the brokerage said.

Suggesting a target price of Rs 479-491, Axis Securities advised traders to buy the Usha Martin stock in the 433-424 range and keep stop loss at Rs 403.

Axis Securities said Hindustan Copper has staged a decisive breakout above its Inverted head and shoulder pattern at Rs 285 on the weekly chart, supported by a strong bullish candle, signalling the end of consolidation and a continuation of the medium-term uptrend.

"The breakout, accompanied by rising volumes, lends conviction to the move and highlights further upside potential. Momentum indicators validate the bullish outlook, as the weekly RSI has broken above its downward sloping trendline, confirming renewed momentum," it said.

The RSI has crossed above its signal line and 50 mark and the target price by Axis Securities on the stock stands at Rs 339-347 levels.